A bond is a stake in a debt issued by a company or governmental body. The holder of the bond, the creditor, is entitled to interest
Interest
An amount paid in remuneration of an investment or received by a lender. Interest is calculated on the amount of the capital invested or borrowed, the duration of the operation and the rate that has been set.
and reimbursement of the principal. If the company is listed, the holder can also sell the bond on a stock-exchange
Stock-exchange
Stock-market
The market place where securities (stocks, bonds and shares), previously issued on the primary financial market, are bought and sold. The stock-market, thus composed of dealers in second-hand transferable securities, is also known as the secondary market.
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